Question: When AD shifts left, does this cause a movement along the SRPC curve or causes the SRPC to shift? How about SRAS shifts left, does
When AD shifts left, does this cause a movement along the SRPC curve or causes the SRPC to shift? How about SRAS shifts left, does this cause a movement along the SRPC or cause SRPC to shift? Explain both cases and refer to the graph in the previous question to help you make sense of it.
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